Poor account receivable management at Saigontourist Cable Television Company Ltd (SCTV)

Abstract

SCTV is a cable TV service enterprise in Vietnam. The company provides services to customers and charges TV service fees. Therefore, commercial credit affects the level of investment in assets and has a significant impact on a company's profitability and liquidity. Trade credit improves sales for the company and can therefore be more profitable but overinvesting in receivables may be costly due to the increase in investment in existing assets. It could signal the acceptance of deferred payment customers. In the telecommunication services in general and SCTV in particular, account receivable management is a key factor. This report showed that the account receivable management in SCTV will be impacted by many causes. The causes we have found due to a part of lack of monitoring system, those are the support in solving receivable’s problem as well as reporting, tracking customer receivable, supporting staff, eliminate unnecessary information. If the account receivable management in SCTV is better than in the past will improve costs and keep customers leading to higher profit margins, ROA and ROE ratios of the company will also be improved. High account receivable at SCTV probably led to customer loss in the future and is considered as an urgent problem and the “Lack of account receivale monitoring system” is the main cause that needs to be solved immediately. Some solutions have been made in order to gain more receivable of customers. After considering some related things of two solutions like benefits, costs as well as the advantage or disadvantage, the best solution for SCTV in this case establish a receivable monitoring software system based on the advantage of low cost. If the course is well-designed and get the expected result, it not only solves the whole problem of SCTV for all time of year but also can be applied to the other brand with the same problem. The project will begin in June, 2020 until the end of september, we expect the project will achieve the best results as desired. Although, the time of researching, conducting and analysis is limited, the result of this report is that the lack of monitoring software system, this is a small contribution to improve receivable of SCTV.